(1) A creditor may not contract for or receive a separate charge for insurance against loss of or damage to property unless: (a)the insurance covers a substantial risk of loss of or damage to property related to the credit transaction;(b)the amount, terms, and conditions of the insurance are reasonable in relation to the character and value of the property insured or to be insured; and(c)the term of the insurance is reasonable in relation to the terms of credit.(2) The term of insurance is reasonable if it is customary and does not extend substantially beyond a scheduled maturity.Added by Laws 1969, c. 352, § 4-301, eff. July 1, 1969. Amended by Laws 1988, c. 8, § 1, emerg. eff. March 14, 1988.
Oklahoma Legal Code